indo-asian news service
New Delhi, June 30: Just hours ahead of the roll-out, the Goods and Services Tax (GST) Council Friday slashed the rate on fertiliser from 12 per cent to 5 per cent and on exclusive parts of tractors from 28 per cent to 18 per cent in a bid to relieve the burden on farmers.
Finance Minister Arun Jaitley and his ministry officials disclosed this information after the Council meeting here, ahead of the roll-out of the new indirect tax regime. The reduction of tax on fertiliser alone will benefit farmers to the extent of Rs1,261 crore, Fertiliser Minister Ananth Kumar told reporters.
“In today’s meeting of the GST Council, some additional set of rules have been approved and there was one major decision which was in response to a number of representations against the 12 per cent former rate of GST on fertiliser,” Jaitley said.
“Some felt that it may increase the burden on the farmer itself and therefore a consensus was taken. The consensus of the Council was to bring the rate down to 5 per cent so that the fertiliser prices come down, it doesn’t go up,” he added.
Kumar said the reduction in the fertiliser rate was taken in the interest of the farmers. Under the new GST rates announced by the Council average rated maximum retail price (MRP) will decrease to Rs 5,909 per ton (or Rs 295.47 per 50 kg bag) as compared to the existing all-India weighted average of Rs 5,923 per ton (or Rs 296.18 per 50 kg bag).
